Keeping 8 percent on security deposit would probably be ok because it is actually rent because tenants did not pay.  

Start researching price to rent ratios in areas and see which area has the best combination of cash flow/place you want to live!

I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

The tenant base, on average, tends to be rougher on the properties, moves more frequently, and cannot absorb any rent increases.  

We plan to stay in the new primary residence for a long time because we love the location, the neighborhood, and the land.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details:After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Turning a dining room into a bedroom can be as cheap as $2K, add $600 in rent, and create a value of $75K.   

Hello, I am located in West Lafayette not indy.

Quote from @John McPherson: Looking for tips on the best way to sell my Rented Homes in 1 transaction .

I would advice being conservative running Birmingham rents due to DOM.